SHENZHEN, China, April 4, 2008 /Xinhua-PRNewswire/ -- China Display Technologies, Inc. (OTC Bulletin Board: CDYT) ("China Display", or "the Company"), a leading manufacturer of optoelectronic products, specializing in small- to mid-sized LED and CCFL backlight units for LCD displays in China, today announced it has entered into an agreement with two of its investors -- Barron Partners LP and Eos Holding, in which these investors will exchange a portion of their warrants for shares of series A convertible preferred stock.
In September 2007, the Company completed a $4.0 million private placement of convertible preferred stock and warrants with accredited Barron and Eos. On March 28, 2008, Barron agreed to exchange warrants to purchase 5,850,000 shares of common stock at $1.50 per share and 1,150,000 shares at $1.30 per share for 3,265,455 shares of series A preferred stock, and Eos agreed to exchange warrants to purchase 150,000 shares of common stock at $1.50 per share and 29,487 shares at $1.30 per share for 83,730 shares of series A preferred stock.
Concurrent with this exchange, the 3,700,000 shares of series A preferred stock that are held in escrow from the September 2007 private placement shall be delivered to the Company for cancellation. As part of the exchange, Barron and Eos agreed to the elimination of the provisions of their remaining Warrants that provided for a reduction in the exercise price of the warrants if certain earnings targets for 2008 were not exchanged.
"We are pleased to enter this exchange agreement with our investors. It will improve our capital structure and significantly reduce potential dilution of our share count," said Mr. Lawrence Chan, CEO of China Display Technologies. "We remain optimistic about our long-term outlook and believe we will be able to continue to take advantage of the increasing demand for back light units to maximize value for our shareholders."
About China Display Technologies, Inc.
China Display Technologies, Inc. through its wholly-owned subsidiary Suny Electronics (Shenzhen) Company Limited ("SUNY") in China, designs, manufactures and markets small- to mid-sized Light Emitting Diode (LED) and Cold Cathode Fluorescent Lamp (CCFL) backlights for various types of Liquid Crystal Displays (LCDs). Its products have applications in electronic consumer products, such as mobile phones, PDAs, GPS systems, portable DVD/VCD players, MP3s and MP4s, medical equipment and household appliances with displays. SUNY was organized in November 2004 and started operations in 2005. It has experienced rapid growth and became a publicly-traded company, listed on the OTC market, through a reverse merger in September 2007. The Company has 600 employees, with manufacturing facilities and management located in Shenzhen, China.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
